Posts

The Tariff Takeaway: It’s Time to Stress-Test Your Supply Chain

After announcing earlier this month that 10% tariffs would go into effect Sept. 1 on $300 billion in Chinese imports, the U.S. reversed course this week and said duties would be delayed until December on certain products. The excluded items include cell phones, laptops, footwear and toys. In addition, other items will be excluded altogether because of health, safety, national security or “other” factors. While the latest news gives some businesses a reprieve, the continued uncertainty – and ongoing tariffs on many Chinese products – have left businesses struggling to mitigate the impact to their operations and their bottom lines.

To deal with the continued fallout, many shippers are exploring ways to reshore goods to other countries. In a recent fashion industry survey, 80% of respondents said they planned to cut back on production in China. But moving manufacturing operations comes with its own disruptions, putting added pressure on already stressed supply chains.

The road to optimization

Whether it’s blanked sailings during peak season, West Coast port strikes or the ongoing drumbeat of tariffs, anything that can go wrong in logistics likely will. Staying competitive in this complex environment requires not just addressing issues as they occur, but also anticipating and planning for whatever may lie ahead.

“It’s been very reactive,” AGL CEO Jon Slangerup recently said of the shipper response to tariffs during the Journal of Commerce Gulf Shipping Conference. “I think everyone is just coming to grips with how they are going to deal with this long-term.”

So how can shippers build supply chains that are more responsive – and predictive – in the face of disruptions? It starts with analyzing your processes, tools and people to find vulnerabilities and opportunities for improvement. Here are three steps to help your supply chain stay strong when disruptions strike.

  • Map out your processes. While many businesses are looking to technology to improve supply chain performance, new solutions are destined to fall short if you don’t understand your problem first. Take the time to map every mode, carrier and handoff point across your supply chain. Many businesses skip this step, but it’s the best way to uncover bottlenecks, find new efficiencies and tailor your technology around your processes.
  • Adopt the right technology. If you’re still running your supply chain on spreadsheets, you’re not alone: 13% of firms still rely exclusively on Excel for supply chain management, according to American Shipper. But to stay resilient amid supply chain stressors, businesses need a more sophisticated approach. A centralized platform can help you gain end-to-end visibility across all shipments, allowing you to pivot quickly when needed and spot trends that can impact performance.
  • Build a high-functioning team. The logistics industry is built on relationships, which is why it pays to cultivate strong ones. A supply chain partner with a deep network can help you navigate hiccups more easily, whether you need spot capacity fast or want to explore alternative production sites.

Supply chain disruptions are inevitable, but they don’t always have to turn into supply chain crises. A proactive approach is the first step toward supply chain optimization, helping businesses handle whatever comes next.

As Peak Season Looms, Here’s How to Prepare

Halfway through 2019, ocean shipping costs have already inched up for businesses, with many carriers locking in rates $200 to $300 higher per TEU than the 2018 contract season. While those rate increases have left businesses less than thrilled, they could actually benefit organizations as the season ramps up by stabilizing schedules and reducing blank sailings that wreak havoc on shipping schedules.

The question of how much shipping will actually ramp up is still unanswered, however. Imports have leveled off compared with last year as businesses rein in restocking, while a number of factors could prompt demand and rates to rise or fall in the coming months:

  • Ongoing tariffs: After last year’s huge spike in shipping to beat impending U.S.-Chinese tariffs, some businesses are taking a conservative approach to shipping to avoid additional increases.
  • Reshoring: With many businesses moving operations to Malaysia or Vietnam, Chinese import volumes have dropped 5% – and rates could be the next to follow.
  • Fuel sulphur cap: Vessels are already coming out of service to prepare for the International Maritime Organization’s 2020 rule capping fuel sulphur levels. Depending on how import levels play out this summer and fall, those capacity cutbacks could boost spot rates.

 3 ways to prepare for the peak

 For businesses with large global supply chains, preparing for uncertainty all year round is essential – and particularly important during the busy peak season. Combining the right tools, people and processes can help organizations navigate fast-changing conditions, operate more efficiently and ensure they’re meeting customer expectations. Here are three areas of focus to keep in mind:

  • Gaining end-to-end visibility. Purchase orders are notoriously difficult for businesses to track, creating ripple effects down the supply chain when milestones are missed. By adopting technology that offers insight into each step of the production process, businesses can plan effectively during the busy months and seize opportunities for efficiencies, like opting for a less expensive but longer route when products are ahead of schedule.
  • Delivering as promised. If a business books 10 containers but only delivers three, the carrier might not be willing to book 10 again next time. Respecting advance notice polices and forecasting accurately can help businesses build stronger carrier relationships – and avoid having to scramble for more expensive alternatives.
  • Make exceptions the rule. Seventy percent of businesses have experienced a supply chain disruption in the past year, and the peak season makes organizations even more vulnerable. When exceptions arise, a centralized technology platform can help businesses identify the issue quickly and make the carrier or mode adjustments needed to keep things running smoothly in the future.

With the state of ocean freight still uncertain in 2019, businesses that invest in the right supply chain technology and expertise will be well-positioned for whatever peak season brings.

Competing in a Consumer-Focused Age with an Agile Supply Chain

From a new couch to a week’s worth of groceries, shoppers can summon nearly anything to their doorstep, local store or delivery locker with just a few clicks. Some of the most significant consumer changes impacting supply chains include:

  • Shifting demographics. While in-store purchases still dominate among shoppers of all ages, younger consumers are continuing to migrate to e-commerce, underscoring the importance of a strong omnichannel supply chain.
  • Shifting buying patterns. Emerging trends, including subscription boxes and purchasing large-scale items like furniture online, are creating complexity and forcing businesses to reexamine their last-mile strategies.
  • Shifting technology. In a role reversal from the last few decades, consumers are pulling ahead of businesses when it comes to technologies like artificial intelligence. These tech-savvy customers expect connected yet frictionless experiences from their brands – forcing many businesses to play catch-up.

Increasing agility through technology

Faced with these pressures, business leaders recognize that agility will be the key to success in the coming years. A KPMG survey found that 68% of CEOs believe that being slow to adapt to change will lead to obsolescence, while Gartner revealed that 82% of CEOs intend to change their business models by 2020 to stay relevant.

For supply chains, a technology-enabled approach is essential to drive agility and keep up with consumer demands. According to a World Economic Forum analysis, digital transformation will generate $1.5 trillion in value for the logistics industry over the next five years. Among businesses that adopt digital supply chains, executives report a 3.2% average increase in annual earnings – the highest ROI of any business function.

As supply chain executives recognize the importance of technology investment, an analysis conducted by AGL and Logistics Trends & Insights found that total logistics IT spending will rise 17% to $87.8 billion between 2017-2022. Yet a data-driven, agile supply chain remains a dream for many businesses, with a significant number of organizations still relying on Excel and email to manage complex supply chain functions. For organizations that master digital transformation in the supply chain, the benefits are big – faster time to market, increased efficiencies and better customer experiences.

Improving Supply Chain ROI in a Tough Tariff Environment

After duties on $200 billion in Chinese goods jumped from 10% to 25% earlier this month, businesses barely had time to blink before receiving news of yet another tranche of tariffs. These duties would cover $325 billion in goods, hitting the price-sensitive apparel sector particularly hard and taking a significant bite out of business’ bottom lines.

While no timelines are available yet for the new tariffs, NRF is expecting “unusually high” import levels in the coming months as shippers scramble to beat the duties. In its latest Port Tracker report, the organization estimated that TEUs would hit 1.9 million in May – the first time ever TEUs have risen to that level before July. That surge in shipments could lead to another chaotic peak season and higher prices for shippers, who are already paying 20% higher ocean contract rates than last year.

Some businesses may also turn to more expensive airfreight to get high-profit merchandise like electronics into the country faster. And once goods cross the border, tight warehouse capacity on the West Coast could push up prices as well, creating additional supply chain pain. For businesses grappling with these issues, a focus on optimization is increasingly critical. Here’s how combining a technology-enabled supply chain with the right logistics expertise can help deliver ROI that carries you through whatever comes next.

  • Find cost-effective capacity. With ocean spot rates already 40% higher than they were a year ago, sourcing affordable spot capacity to beat impending tariffs is likely to be a challenge once again during peak season. A centralized supply chain platform makes it easier to compare carriers and routes to find the most cost-effective solution, while an experienced supply chain partner with a deep logistics network can give you extra leverage in negotiations.
  • Shift your sourcing. As the cost of doing business in China continues to climb, many of AGL’s own customers are weighing the pros and cons of moving to neighboring countries. A supply chain platform that offers an end-to-end view, from production to final destination, lets your business compare suppliers and make the right choice based on production and logistics costs, vendor reliability, and more.
  • Check your classifications. For businesses that haven’t reviewed their classifications recently, the latest round of tariffs is a good reminder to keep current. A centralized platform makes it easier to review classifications in one spot to avoid penalties and identify opportunities to substitute products not subject to duties, if possible. A partner with customs expertise can help find additional ways to save time and resources, such as improving auditing procedures.
  • Automate routine activities. A more efficient supply chain starts with understanding all the touchpoints across your operations and seeing where there’s room for improvement. By managing every shipment in a single platform, you can uncover those efficiencies more easily. Technology that enables management by exception, rather than reviewing every single shipment, can also free up significant time for large global importers.
  • React faster to disruptions. Supply chain disruptions are inevitable, but being able to make adjustments on the fly can help keep issues from ballooning into disasters. For example, when faced with fast-approaching tariffs, a technology-driven supply chain can help you decide whether shipping via airfreight or paying additional duties will ultimately be less costly.

As shippers prepare for more tariffs and a potentially wild peak season, investing in effective tools, people and processes can help offset the impact to their operations and their bottom lines.

Winning the Tariff Waiting Game

The last few months have forced many global importers into a holding pattern as they wait for the latest round of tariff headlines. The March deadline has come and gone for 25% tariffs on $250 billion in Chinese goods, and the U.S. administration has said that talks are going well with China, putting additional increases on hold indefinitely. The 10% increases imposed last year are still in effect, however, and the U.S. has hinted they may stay in place, even if the two countries make a deal. Meanwhile, trade tensions continue to flare around the world, with news of $11 billion in potential tariffs on European Union products surfacing earlier this month.

These ongoing uncertainties are having a definite impact on the $6.5 billion in goods that come through U.S. ports each day. After breaking import records in a rush to stockpile inventory last year, businesses have slowed their pace so far in 2019. U.S. ports handled 1.62 million TEUs in February, down 14.3% from January and a 4% year-over-year decrease.

While import volumes for April and May are expected to top 2018 levels, much will depend on the ultimate results of U.S.-Chinese negotiations. If tariffs do rise to 25% on some goods, many shippers will need to make major adjustments to their sourcing and transit strategies to stay afloat. No matter where duties land, however, the current environment is making businesses more aware of the power of tariffs to shape the economy – and the importance of customs compliance. Whether you have an in-house brokerage team or rely on external support, these strategies can help your business stay strong amid tariff uncertainty.

Go to the source. If your business has global production facilities, running what-if scenarios now can help you hit the ground running if massive tariff spikes require a shift in sourcing. An experienced supply chain partner can help you assess alternate transit routes and associated costs for moving production from China to Vietnam or Malaysia, for example. In addition, some shippers are turning to their vendors to handle clearance to mitigate the bite of tariffs – whatever those duties might be in six months.

Double-check classifications. While many classifications, like tires, don’t leave much room for interpretation, businesses should still review all their harmonized tariff classifications if they haven’t done so recently. A customs brokerage expert can help confirm all classifications are correct, so you’re not paying tariffs unnecessarily or putting yourself at risk for fines for missing duties. Depending on your goods, there may also be opportunities to adjust your sourcing to items that aren’t eligible for duties.

Stay on top of customs paperwork. Regardless of what the future brings for tariffs, the increased scrutiny on all U.S. imports is likely here to stay. Establishing a thorough auditing system can help your business avoid errors and fines, while cutting back on time-consuming post-summary corrections. Trading paper-based processes for automated systems can also help you improve compliance and overall efficiency.

While only time will tell whether more tariffs are in store, businesses that invest in a strong customs compliance program now will be better positioned to handle whatever comes next.

3 Strategies for a Smoother Ocean Shipping Season

Efforts by ocean carriers to prop up rates by reducing sailings last year came at the exact wrong time for importers, coinciding with President Trump’s announcement of additional tariffs on Chinese imports. As shippers raced to beat the effects to their bottom lines, imports hit a record 21.6 million TEUs in 2018 – and spot rates skyrocketed accordingly.

Just a few months into 2019, several factors are already keeping spot rates at higher-than-normal levels:

  • High import volumes: Demand for cargo space has remained elevated among shippers looking to beat additional tariffs, with January imports rising an estimated 4 percent over the previous year.
  • Trade uncertainty: While the March 1 tariff deadline has come and gone, continued back-and-forth between the U.S. and China make it unlikely that rates will drop anytime soon.
  • Bunker fuel costs: With carriers facing rising fuel costs and an impending 0.5 percent global sulfur cap on fuel content, shippers will undoubtedly see the effects reflected in their rates.
Navigating contract season effectively

As shippers enter contract negotiations, they will need to work with carriers to find a middle ground that balances cost with capacity to keep their supply chains moving. These strategies can help businesses lock in the capacity they need without compromising their budgets.

  1. Focus on total spend, not on rate. Trying to negotiate contract rates at the lowest possible level will ultimately wind up costing you more. Rather than trying to nickel and dime contract rates, focus on choosing a reliable carrier who will keep your shipments on time and on budget.
  2. Map your supply chain. Truly optimizing your ocean freight spend requires taking a critical eye to your supply chain. A centralized technology platform offers insight into every mode, carrier, shipment and more, so you can spot opportunities for improvement and make informed decisions during negotiations.
  3. Be ready for the unexpected. A provider with a deep network of relationships can be invaluable in accessing affordable capacity when disruptions inevitably arise. A little logistics creativity, such as changing the port of discharge, can also help lessen the impact of disruptions.

Want additional tips on managing ocean freight season without sinking your budget? Read our recent article in the Journal of Commerce, “Navigating 2019 ocean contracting.

What’s Next for Supply Chain Tech?

From floods to hurricanes to historically high ocean rates, 2018 has dealt one challenge after another to supply chain professionals. In our recent infographic, we broke down the stories making headlines and causing turmoil for shippers this year, including:

  • April 1’s ELD mandate, which led to a reported drop in productivity for 83 percent of trucking companies
  • The $250 billion in Chinese tariffs President Trump has imposed this year, with more looming on the horizon
  • The shocking 50 percent year-over-year increase in ocean rates, as freight carriers tried to wrestle back control of pricing and improve profitability

As for 2019? More uncertainty and complexity are sure to follow. Measures like the bunker adjustment factor, which many ocean carriers are enacting to offset rising fuel costs, will have an impact on organizations’ bottom lines. Meanwhile, two in three businesses say they lack visibility into logistics processes, and 70 percent of businesses experience supply chain disruptions. These current and impending challenges underscore the importance of an agile, technology-driven supply chain.

Tech Investments Are on the Rise

By preparing with the right mix of tools, people and processes, businesses can equip themselves to handle whatever 2019 brings. Technology is the backbone of that strategy: A centralized platform is key for improving visibility, optimizing operations, gaining insight and delivering value across the supply chain.

Recognizing these opportunities, a new wave of digital logistics startups aims to help businesses enhance nearly every area of supply chain activity. Venture capital continues to pour into the sector, and shippers are increasing their tech investments to gain a competitive edge in the market.

In a report set for release November 13, AGL will reveal:

  • How much businesses are spending on supply chain technology today, and how much that number will rise by 2022
  • The growing role that disruptive technologies play in overall spending
  • The top five areas for technology innovation

Visit our website to download a free copy and get an inside look at the technologies that could transform your operations in the years to come.

Want more competitive insights? Download our infographic for a look back at supply chain in 2018 and strategies to prepare for the year ahead.

What to Look for in Your Supply Chain Partnerships

2018 has been packed with one shakeup after another, leading to one of the most uncertain environments in recent memory for shippers. The biggest headline-grabbers include:

  • Trump’s tariffs. Arguably the biggest supply chain story of the year, the U.S. and China have kept importers on their toes with a barrage of duties. With roughly $250 billion in Chinese goods now subject to tariffs, businesses have been importing record-breaking volumes as they rush to get items in hand before duties take effect. The trade war is poised to escalate further, as Trump threatens to enact tariffs on an additional $267 billion in goods.
  • The ELD mandate. The long-awaited mandate, which required truck drivers to install electronic logging devices (ELDs) that track and cap their total hours in service, has had a ripple effect across modes. The mandate reduced productivity for 83 percent of trucking companies, creating a capacity crunch and rising rates for shippers. Meanwhile, many ocean carriers have been forced to sit at port for trucks, prompting some to impose emergency intermodal fees and restrict door deliveries.
  • Ocean turmoil. The industry’s move to cancel sailings in an effort to improve profitability shocked many shippers this year, and continues to wreak havoc with capacity and rates. Total capacity has shrunk by 7 percent, leading to a 50 percent year-over-year spike in Trans-Pacific ocean rates and a scramble to secure space during peak season – even for shippers under contract. Those hefty prices are slated to continue into 2019, thanks to newly announced bunker adjustment factor surcharges.
  • Disruption from disasters. When Hurricane Florence tore up the East Coast in September, businesses across the country felt its effects. Delivery disruptions rose by 49 percent that week nationwide, despite only a 2 percent drop in shipments. With more than a month to go before hurricane season ends, more disruptions could be looming for shippers.

Dealing with supply chain disruptions

For shippers large and small, the move toward technology-enabled supply chains is helping to improve visibility, control and responsiveness when things go awry. But while a centralized platform is the cornerstone of a high-functioning supply chain, hands-on support is the key to keeping it running day after day.

That’s why more businesses are turning to external providers to help them navigate this disruption-prone environment. Freight forwarders now account for nearly 45 percent of U.S. containerized imports from Asia, a 2 percent year-over-year increase. The right partner can help businesses access scarce capacity, tackle challenges head-on and offer best practices for improving operations. Here are a few areas to consider when choosing yours.

  • Dedicated support. By assigning a single point of contact to your business, your partner can get to know your business goals, rules and requirements better, so they can make more effective recommendations.
  • A deep logistics network. The ongoing struggle to source ocean capacity underscores the importance of a well-connected partner. Look for a partner with a strong network to help find available space at the best possible rates.
  • Customs expertise. As the scope of U.S. tariffs extends to new areas like electronics, food and housewares, more businesses are bracing for the impact to their organizations. A partner with customs brokerage expertise can minimize the pain by ensuring harmonized tariff classifications are correct, helping to apply for exemptions and taking other steps to ensure customs compliance.

For supply chain professionals, dealing with disruptions is a growing part of the job. Finding the right partner can help equip these businesses to face today’s biggest challenges – and whatever comes next.

Prepping for a “Perfect Storm” This Peak Season

Peak season typically begins toward the end of summer, reaching its height during Golden Week in October as businesses work to get their goods in hand before the holidays. But thanks to a perfect storm of factors, shippers have been facing peak-like conditions for months – and the current environment is poised to become even more intense.

Chief among those factors? The significant reduction in ocean capacity this year, a move which has stunned many in the industry. Faced with lackluster financial results and persistent overcapacity, carriers across the board have cancelled lanes in an effort to wrestle back control of rates. Those cutbacks have trimmed capacity by 7 percent so far, the Journal of Commerce reports.

At the same time, businesses working to stay ahead of tariffs have ramped up importing activity, leading to record-breaking volumes at the Ports of New York and New Jersey in July. Add in potential weather disruptions, and you have a recipe for chaos this peak season. As they work to get their goods across the border, shippers are facing:

  • Soaring spot rates. Trans-Pacific spot rates have climbed more than 50 percent year-over-year, putting even more financial pressure on shippers contending with new tariffs.
  • Major service delays. Even a contract isn’t enough to ensure space during this busy season. Some carriers are rolling contracted cargo or enforcing minimum quantity commitments, only allowing shippers one week’s worth of capacity at a time. That capacity crunch promises to intensify during peak season, with ports in China and Thailand already reporting backlogs.
  • Greater need for airfreight. Shippers have already been leaning more heavily on air cargo to meet customers’ “available anytime” expectations. Scarce ocean capacity is forcing even more businesses to use expensive airfreight instead, and that increased demand is prompting China-U.S. air cargo rates to rise further.

Preparing for peak season – and beyond

The factors contributing to the busy peak season appear likely to stick around for a while, so businesses need a plan to navigate the rest of 2018 and beyond. Here are three ways to ease peak season pain.

  • Invest in a centralized supply chain platform. Information is the key to managing this uncertain environment. Supply chain software that provides visibility and control across all shipments and modes can help businesses quickly pinpoint the status of high-priority shipments and adjust allocations or carriers when needed.
  • Communicate clearly, and early, with your supply chain partners. The logistics industry is built on relationships, so a provider with a deep network and knowledge of the space can be valuable for sourcing scarce capacity. Look for providers who take the time to understand your business goals and carrier preferences, and let them know as far in advance as possible when you’ll need bookings.
  • Be open to creative solutions. When things get tight, adjusting your route or timeline can help you meet drop-dead delivery dates without sinking your budget. Talk to your provider to find the best solution, such as changing the port of discharge for cargo traveling inland, or choosing a sailing with a longer transit time to reduce the chance of getting bumped.

With the holidays fast approaching, supply chain professionals need to plan now. The right mix of technology and support can make all the difference in navigating the challenges this peak season will bring.

5 Steps for Improving Customs Efficiency

With 28 percent of U.S. GDP now related to trade, businesses across a variety of industries are wrestling with the complexities of customs brokerage. The U.S. collects $95 million in duties each day, and companies need a plan to ensure they’re not paying more than their fair share. Supply chain professionals also have to manage individual countries’ trade requirements, complete extensive documentation, and maintain accurate classifications for their imports – all while keeping up with a constantly changing environment.

While customs brokerage has a reputation for being cumbersome, growing trade tensions and a flurry of regulatory activity are making the process even more difficult. Last week’s announcement regarding a potential 25 percent tariff increase on over 6,000 products, up from the originally planned 10 percent, is just one of the most recent examples of the challenges inherent in managing the already volatile supply trade landscape. The U.S. government is increasingly scrutinizing every shipment that arrives at port, and staying current on regulations like the recent changes to duty refunds is becoming even more time-consuming for importers. Meanwhile, some ocean carriers are cutting back on service between Asia and the U.S. in response to U.S.-Chinese tariffs. That decrease in capacity prompted double-digit increases in spot rates in July, making it even more important to manage customs cost-effectively.

By establishing effective customs brokerage tools and processes, businesses can keep shipments on track, avoid paying for fines and penalties, and make the most of their time and resources. Here are five key areas to consider:

  1. Stay up to date on harmonized tariff classifications. Inaccurate classifications can leave your goods stranded at the border or subject you to hefty fines. In the wake of the U.S.’ confirmed new tariffs on nearly 800 items, now is an ideal time to review classifications. Collecting all shipment data into a single platform makes this task infinitely easier, while also allowing businesses to see shipment status easily and reroute goods as needed if a shipment gets stuck.
  2. Take a hard look at your sourcing. With the U.S.-China trade battle continuing to escalate, many U.S. companies that import Chinese goods are considering their alternatives. When vetting your vendor list, take all the pros and cons into account, including applicable duties, vendor reliability and how quickly goods can travel from a particular destination. For example, some wooden furniture importers are choosing Thailand and Vietnam for production over China, despite its strong transportation and port infrastructure, because Chinese goods are subject to AD and CV duties that can lead to retroactive changes in tariff rates and slow liquidation.
  3. Use ACE to your advantage. The Automated Commercial Environment (ACE) saved businesses $52 million in 2017 by automating filings for U.S. Customs and Border Protection and dozens of partner agencies. In addition to streamlining the filing process, ACE also gives businesses a ready-made view into all historical filing data. That means businesses no longer have to worry about losing data during brokerage or port changes, and they can also uncover information to enhance efficiency, such as ports where they’ve had a history of exams.
  4. Put the government to work for you. While it requires some time upfront, obtaining C-TPAT certification from the U.S. government can ultimately help accelerate your supply chain by reducing the amount of cargo called for exams. In addition, taking part in the U.S. Foreign Trade Zone program can help businesses significantly improve their bottom lines by deferring, reducing or even eliminating import duties. An experienced supply chain partner can help you determine which programs fit your business best and guide you through the process.
  5. Build a sound audit process. Without an established auditing program, businesses can become overwhelmed with time-consuming post-amendment entry corrections, shipment delays and even fines. Whether you manage the process yourself or rely on an external provider, make auditing a priority. Your supply chain partner can help you evaluate your internal processes, including recruiting and training people with the right skills, while providing the peace of mind that your filings are accurate.

For global importers and exporters, customs brokerage is more than just a checkpoint along the way – it’s a critical component of the supply chain. By partnering with a provider who understands your business and the rapidly evolving trade landscape, your business can boost operational efficiency as well as customs compliance.